SANCTIONS COMPLIANCE & ENFORCEMENT

Sanctions compliance check is a significant matter for legal security of your company. The US, EU, UK or any jurisdictions may have sanctions or export control laws (such as OFAC in the US or OFSI in the UK) and your business may be affected by these sanctions and controls.

Sanctions compliance and enforcement practice helps our clients identify and mitigate the compliance and business risks of UK, UK, and EU trade and economic sanctions and investigate and address potential violations.

We provide comprehensive services for compliance, conducting identity checks of companies and individuals before the execution of contracts and partnerships. This strategic approach ensures that the clients navigate the intricate landscape of international business with confidence.

Clients may face with primary or secondary sanctions. Primary sanctions are initial set of restrictions imposed directly by a jurisdiction on a targeted country, entity or individual. For example, primary sanctions may include restrictions on exporting certain goods and technologies, freezing assets, blocking financial transactions or prohibiting investment actives with the target country or entity. On the other hand, secondary sanctions are measures that extend the reach of primary sanctions to non-targeted entities or individuals that have connections or dealings with the target country, entity or individual.

To determine if your company may be subject to primary or secondary sanctions, the concept of nexus comes into play. Nexus refers to the connection or link between a person or entity or particular jurisdiction, giving rise to rights, obligations or liabilities within that jurisdiction. It is significant in assessing whether your company has sufficient presence or activity within a specific jurisdiction to be subject to its laws and regulations.

To avoid any potential sanctions risks, it is advised to screen and check all transactions, contracts against applicable prohibited lists regularly. Sanctions may also have an extra-territorial application. Even seemingly innocuous and simple activities, such as using US-based email services, software or currency in your transaction or contract, or employing technologies built by US-based companies can subject your company to sanctions.

Your company might need an item and once you buy it, you own it and you can do whatever you like, but only in principle. From the perspective of sanctions, the US government might think otherwise and can extend its jurisdiction over you for sanctions. Therefore, sanctions are in tiny details of your business and your transactions necessities compliance checks regularly.

The clients/shareholders/managers/companies need to be very careful about certain provisions of their main and subcontractors such as price escalation provisions, or any provision shifting risks between parties, force majeure clauses, price adjustments, “the act of government" related provisions, price currency provisions (such as guarantees, warranty letters etc.). All of these provisions are paramount importance both for being subject to sanctions and for dealing with sanctions once they are applied.

Our team delicately assists clients with structuring their transactions, contracts and third-party relationships to avoid sanctions risks.